Nissan is one of the top-selling Japanese car brands in Canada thanks to its affordability, reliability, and innovation. However, despite their mid-range prices, buying a Nissan outright isn’t feasible for everyone without a little financial help. Thankfully, there are a few ways you can finance a Nissan in Canada to help alleviate the financial burden.
Key Points
- Many Nissan models are relatively affordable, but may still come with price tags that are too high for many consumers to cover in full at the point of sale.
- Many financing options are available to help car buyers purchase a Nissan and spread the cost of the purchase price.
- Financing options can include car loans, personal loans, and leasing.
- You can get financial assistance to buy a Nissan through Nissan Canada Finance, dealership financing, private party financing, and leasing.
How To Finance A Nissan In Canada
Depending on how strong your income and credit score are, you may have a few different options for financing a new or used Nissan.
Financing A Nissan Through Nissan Canada Finance (NCF)
Nissan Canada offers its own in-house financing programs. Many drivers prefer in-house financing because they can buy and finance a vehicle in one spot, making it a more convenient option.
With Nissan Canada Finance, you’ll have financing and leasing options to choose from when purchasing a Nissan vehicle. NCF offers competitive interest rates, flexible repayment plans, and loyalty programs that make buying and owning a Nissan more accessible to consumers.
Financing A Nissan With A Bank Car Loan
Car buyers also have the option to obtain bank financing through their dealership.
Dealerships typically network with lenders to facilitate auto loans. When you apply for a car loan through your dealership, the lender will distribute the funds to the dealer, and loan repayments are made directly to the lender until the loan is fully paid off. The entire loan application and approval process can be done at the dealership after you’ve finalized a deal on a Nissan model you want to buy.
| Can I get a car loan with bad credit? If you have bad credit, you may not have much luck applying with a bank. Traditional lenders typically require a good credit score (at least 660+). If your score lags behind, you may find it easier to qualify for auto financing with an alternative lender. Keep in mind that while your chances of loan approval may be higher with an alternative lender, you may be charged a higher interest rate, making the loan more expensive. |
Financing A Nissan With A Private Party Loan
If you’re planning to buy a used Nissan from a private seller, then a private party auto loan may be something to consider. A private party auto loan allows you to finance the purchase of a used car from a private seller. You’ll apply for a lump sum of money from a lender, then repay the borrowed funds through installments over a set term until the loan is fully repaid.
With private party auto financing, you can shop like a cash buyer and make an all-cash deal with the seller.
Keep in mind that lenders may impose restrictions when it comes to financing used vehicles. More specifically, traditional lenders may have limitations on things like the vehicle’s age, condition, and mileage. Cars that are too old or have high odometer readings may not qualify.
Where Can You Get A Car Loan In Canada?
| Amount | Interest | Term (Months) | ||
|---|---|---|---|---|
 | $500 - $50,000 | Up to 35% | 12 - 84 | Learn more |
 | $7,500+ | Varies | 24 - 96 | Learn more |
 | $500 - $35,000 | Starting at 29.99% | 9 - 60 | Learn more |
 | $500 - $10,000 | 12.99% - 34.99% | 9 - 60 | Learn more |
 | $5,000 - $40,000 | Varies | 12 - 72 | Learn more |
 | $5,000 - $45,000 | 4.90 % - 29.95% | 36 - 72 | Learn more |
 | Varies | 11.9% + | 12 - 84 | Learn more |
 | Up to $50,000 | Varies | 12 - 84 | Learn more |
Financing A Nissan With A Personal Loan
You can also get a personal loan to finance your Nissan. Essentially, you would borrow a lump sum of money, use it to buy your preferred vehicle, then repay the lender in installments.
The only problem here is that unsecured loans can come with higher rates and less flexible terms, because the lender doesn’t have collateral to cover their losses if you default.
That said, a personal loan is very flexible and can be used to buy any car you want, especially older used vehicles.
Learn more: Best Personal Loans In Canada
Alternatives To Financing A Nissan In Canada
While financing is a common way to purchase a Nissan, other alternatives are available:
Paying In Cash
If you have the funds readily available to cover the full price of the car, you may consider making an all-cash deal. This way, you can cover the full price of the car upfront without having to take out a loan and deal with loan payments every month. You’ll also save money that otherwise would be spent on interest charges.
Leasing A Nissan
Nissan offers Canadians the ability to lease their cars. With a lease, the residual value of your Nissan is calculated at the start of your lease.
Nissan’s standard leases also have a 24,000 km/yearly driving limit. Every extra kilometre over the limit will come with an added cost. When the term ends, you can buy the car or lease another.
How Much Does It Cost For A Nissan Finance In Canada?
To understand how much you’ll pay for a Nissan finance in Canada, it’s important to understand the factors involved in purchasing and financing:
- Interest Rate: One of the most significant factors in your car loan is the interest rate. Average rates on car loans in Canada currently range from 7% to 8%, with the average currently sitting around 7.59%. That said, the rate you’re charged will be based on your financial profile.
- Loan Term: Car loan terms range from 12 to 96 months. Longer terms can reduce your monthly payments, but you’ll pay more in total interest over time. Shorter terms can save you money in interest over the term, but come with higher monthly payments.
- Fees: Additional charges may apply to your Nissan financing, such as registration fees, vehicle delivery fees, and penalties for late payments.
| Sales Tax on Nissan Purchases in Canada Sales tax typically applies to Nissan purchases in most cases. The rate of tax you pay depends on the province where you buy the vehicle, whether it’s new or used, and whether you purchase from a dealership or private seller. You’ll need to factor in this added cost when buying and financing a Nissan. Learn more: Taxes On Cars In Canada: Dealership vs. Private Sale |
How To Calculate The Cost Of A Nissan?
Here’s an example of how much it could cost to finance a Nissan in Canada using three different models and price points. In this example, we’ll use a 60-month term and 3.99% interest rate:
| Nissan Versa | Nissan Murano | Nissan Armada | |
| Starting MSRP | $20,798 | $46,848 | $84,998 |
| Monthly Payment | $382.93 | $862.57 | $1,564.98 |
| Total Interest Charges | $2,177.98 | $4,905.95 | $8,901.04 |
| Total Loan Cost | $22,975.98 | $51,753.95 | $93,899.04 |
Calculation source: Loans Canada Car Calculator
Keep in mind that this is only an example and doesn’t include a down payment or sales tax. The actual cost of your financing deal can vary based on your credit, down payment, and loan/lease term. You may also be able to trade in your used car and get its value deducted from the price of a newer Nissan.
How To Lower Your Nissan Financing Cost?
There are ways to keep the cost of your Nissan purchase and finance as low as possible:
Look For Nissan Discounts
If you’re a returning Nissan customer, you might become eligible for special discounts through the Nissan Canada Finance Loyalty Program. This program is available for drivers who own or are in the process of leasing/financing a Nissan from 2013 or onward.
The Loyalty Dollars you can earn from your Nissan depends on the model, and can range from $500 to $1,500. Once you qualify, you may use your discount to qualify for a lower payment, interest rate, or after-tax price on your current Nissan.
Keep Your Credit Score Healthy
A good credit score reduces the lender’s risk, because it means you’ll be more likely to make timely loan payments. As a reward, you may be offered a lower interest rate. This can help you save hundreds of dollars over the life of the loan.
Make A Bigger Down Payment
The higher your down payment, the smaller the loan you need to take out. This translates into smaller monthly payments.
It can also mean a lower interest rate because it reduces the lender’s risk. This can mean even more savings.
Choose Your Loan Term Wisely
Depending on your goal and needs, you may choose between a longer loan term and a shorter one. Long loan terms may be great if you’re looking to keep monthly costs low, as your loan repayments tend to be lower compared to shorter terms.
However, if you’re looking to keep the overall cost of financing your Nissan as low as possible over the long term and are capable of making higher monthly payments, then a shorter loan term is the way to go.
Learn more: 84-Month Car Loans: The Good And The Bad
Does Nissan Offer Any Car Warranties?
Yes, all new Nissans feature a limited warranty that provides coverage for up to 3 years or 60,000 km (whichever happens first). This type of basic coverage includes the cost of parts and labour due to manufacturer’s defects, as well as the following components:
| Basic Coverage | 3 years or 60,000 km |
| Battery Equipment (Original Only) | 3 years or 60,000 km |
| Powertrain | 5 years or 100,000 km |
| Supplemental Restraint System | 5 years or 100,000 km |
| Surface Corrosion | 3 years or 60,000 km |
Visit Nissan.ca for more information on Nissan Warranty coverage.
Final Thoughts
While you can find affordable Nissan models, they still run in the tens of thousands of dollars, making financing a great way to achieve car ownership. Before you buy, lease or finance a Nissan, don’t forget to compare options, prices, and funding sources to find the best deals possible.
